Single Member LLC with Stock trading

Forum|Forum|5 years ago
April 27, 2021
1 reply
5 views

My client has bought and sold stocks with E-Trade under his LLC, which is a single member LLC. Should Form 1065 be filed or under Form 1040 - Sch. C? If under 1040 Sch C, how does it reflect on California Form 568?

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dkh

Level 15

Single member LLCs cannot file Form1065. File Sched C if business, Sched E if rental.

Are you putting the stock trades on the Sched C ? If yes, why?

I can't answer the California Form 568 - sorry.

H

hap

Level 2

SINGLE MEMBER LLC'S ARE REPORTED ON SCHEDULE C IF A BUSINESS. ANY STOCK TRANSACTIUONS REPORTED ON SCHEDULE D. SM LLDS' ARE DISREGARDED ENTITIES AND REPORTED ON YOUR PERSONAL TAX RETURN.

IEG

Just-Lisa-Now-

Intuit Community Champion

If you check the box at the top of Sch C that its a CA LLC, then when you switch over to the state return (assuming youve installed the 568 module) you should have the SMLLC as an option....it will pull the Sch C info over to it and compute the $800 annual fee.

You want to be sure he qualifies as a day trader, not many people do.

https://www.irs.gov/taxtopics/tc429

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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